The previous week brought us more unexpected turmoil for the foreign exchange trading industry. A surprise announcement about FXCM’s business practice in the US caused havoc for shareholders as a $7 million fine was imposed on the company.

More Turmoil at FXCM

FXCM is the latest brokerage to exit the US market. The company’s CEO Drew Niv along with William Andhout have been banned from the industry after an order from the US Commodity Futures Trading Commission (CFTC).

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CySEC Getting Stricter

The Cyprus Securities and Exchange Commission (CySEC) took another step in its efforts to make the financial services providers under its supervision more strictly adhere to its guidance. In its latest circular on marketing obligations, the Cypriot regulator addresses outsourcing of such services, pointing out that CySEC regulated brokers are required to operate their sales and marketing divisions from the broker’s head office or from another EU-member country.

The change appears to be directed towards Israeli brokers and companies that have been outsourcing activities to the Far East in their efforts to target clients from the region.

China vs Crypto Reloaded

China launched a crackdown on Bitcoin exchanges, ultimately forcing them to suspend withdrawals in Bitcoin and Litecoin. Chinese yuan withdrawals remained unaffected with the end result from the ban causing only hourly volatility.

Chinese authorities are particularly keen on controlling the flows of capital to and from the country. A big number of transactions in virtual currencies are linked to Chinese residents attempting to transfer their savings outside of the country.

Turkish Delight

Another emerging market, Turkey, introduced a draconian cap on leverage, and a high floor for minimum deposits. The country’s authorities acted very decisively by decreeing that retail brokers in the country can no longer provide to their clients a leverage ratio higher than 1:10.

The sudden changes were not discussed with the industry in Turkey. The chief regulators also introduced a floor for minimum deposits at about TRY 50,000 ($13,500). Industry insiders fear that only a handful of clients will stick to retail FX after the changes.